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Town of Becket Finance Committee
January 7, 2010 Minutes
FinCom Members Present: Mike Falk, Ann Spadafora, Amy Fyden, Steve LaBelle, Jeremy Dunn
Also Present: Bill Cavanaugh
The meeting was called to order at 7:00pm.
- Minutes of 12/17/09 Approved
- Review 2nd draft of FinCom portion of Becket 2009 Annual Report. Approved.
TASK: Mike to submit to town secretary. (done)
- Mike informed SelectBoard (at 1/6/2010 meeting) of his recent discussion with Marge Foster, CBRSD Bus. Mgr. She stated that with approval from school committee, CBRSD intends to propose a FY2011 budget with net 2% increase over FY2010. This will likely mean Becket’s share increases ~4% (~$80,000) due to DOE wealth formula. CBRSD is assuming -5% Chap 70 aid (could be -15%), and assuming -44% Chap 71 transportation aid, based on Governor’s announcement in Dec (before it was rescinded). CBRSD is planning $500,000 E&D draw-down; will retain 2.5% E&D (1/2 of what the law allows). Mike spoke afterwards with CBRSD superintendent Jim Stankiewicz, who guessed that a +2% budget will pass at least 5 of the 7 towns.
- Based on discussion with CBRSD and other factors outside of our control, FY2011 may be quite challenging. Mike urged all SelectBoard members to attend FinCom meetings throughout budget season. The goal is to balance the budget while minimizing reduction in services/staff/wages. SelectBoard gave a very positive response and stated their intention to participate.
- Jan 7th FinCom meeting was not posted as joint SelectBoard meeting. Future FinCom meetings during 2010 budget season will be posted as joint with SelectBoard so if there is more than one SelectBoard member present, they can vote as needed on any relevant select board issues.
- FY2010 Year-to-Date review
Adjustments to budget: a) CBRSD refund of ~$10k. b) FY09 Snow & Ice account – no overrun (previous guess ~$45k). c) Free cash estimate ~$25k. d) Land Auction estimate $50k. e) no additional costs for Ice Storm cleanup. If all assumptions are true, could have ~$63k excess.
Based on the above numbers, Tony plans to defer land auction till July 2010, so it falls in FY2011. This way we can include land auction revenue in FY2011 budget; if we hold land auction in FY2010, we have to wait until free cash is certified to see the revenue, and can’t use it during budget process.
Free cash certification for FY2009 to be completed by 1/15/2010. This must wait until FY2009 books are closed, then must be signed off by DOR. We cannot set tax rate until DOR signs off
Based on above timing, Tony decided to send 3rd Quarter 2010 estimated tax bills. In addition, due to not-yet-reimbursed FEMA expenses, we will have to borrow some money, but interest rates are quite low. FY2010 Short-Term Interest budget is $1,500 which should be sufficient.
Amy Lane discovered some kind of discrepancy in FY2009 and/or prior years. Details are unknown at this time. Due to this, Tony requested auditors to begin FY2009 audit in 2nd week of February.
- FY2011 Probable Conditions
- per #3 above, CBRSD +4% ($80,000)
- Payment in Lieu of Taxes (PILOT) reduced $25,000 per Governors announcement. This number is part of Cherry Sheet revenue
- Tony estimates local receipts (especially Excise Tax) may be reduced ~$10,000.
- Other out-of-control expenses expected to rise (Health Insurance, County Retirement, etc.)
- Total increase at least $115,000, may be offset by small amount of new growth.
- Land auction estimated at least $50,000 will help offset some of the increase.
- Tony will do first budget draft with input from FinCom and Select Board. CBRSD 1st draft budget is due 90 days before 1st of 7 town meetings; might be available by next FinCom meeting 2/4/10.
Tony will speak with all dept. heads, asking for their suggestions and recommendations on how to reduce expenses with least impact to town services.
FinCom members to review FY2010 budget, generate ideas on what cuts could be made in FY2011 with least impact to town services & staff.
Next FinCom meeting is Feb 4th.
Mike is away from mid-January to mid-March.
Ann will chair next 3 meetings (Feb 4, Feb 18, March 4).
Tony will setup conference-phone for next 3 meetings. Mike will join by phone, but cannot vote.
Mike will prepare agenda for next meetings in consultation with Tony.
There was no public input.
Meeting was adjourned at 8:31 pm.
Respectfully submitted,
Jeremy Dunn
Clerk
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